Business Performance Measurement - Essay Example

Operations strategy sounds at first like a contradiction. How can ‘operations’ which is generally concerned with the day-to-day creation and delivery of goods and services be strategic? Strategy is usually regarded as the antithesis of those day-to-day routines and activities which are the responsibility of operations managers. But the way in which a firm’s operations resources are managed is increasingly seen as being central to its long term strategic success. Operations do have a strategic role.” (Source: Operations Strategy, Slack & Lewis 2002) As concerns to an organization, its structure impacts the manner in which work is basically carried out. More than anything else it adheres to the different purposes of the discrete services and the related achievements with the passage of time. This brings to light the notion of discussing the structural basis of the organizations themselves. For starters, these organizations might not be that easy to understand at the very beginning. These can encompass a variety of different aspects, features and traditional mindsets which make up their structures. To start with, we see that an organization can either be formally aligned in its ways and means of doing things and different processes or the same might just be in a way informal in quite a few of its activities and tasks. The manner in which it runs across this paradigm is something that needs to be studied in depth before we reach further consensus on their purposes and the kind of achievements that they have had. The communication within an organization can flow in one of three ways or in all the three directions. This means that these three directions pave the way for the ease of communication and there are as such no barriers to arise from the whole equation. The first communication flow is from top to bottom, which means that the communication starts from the top management and goes down towards the middle and lower management. The second form could be the one that starts from the lower or middle management and goes up towards the top management. The third communication flow could be in the kind of peer to peer communication and interaction. This means that the employees and the workers at the same level communicate within their own capacities and as such there are no hindrances arising from the whole communication matrix. Apart from this, within an organization the communication also flows in a formal as well as an informal manner. Where the communication is more formal and sophisticated, the interaction is usually done through paper and written requests whereas the informal talk is also called ‘grapevine’ and is mostly done in a casual manner without any such paper work to document the very same. The barriers within the communication process should be removed as this is known as the “noise” factor in the whole communication matrix. We must focus on the manners in which the organizational structures actually bring about the work flow processes together rather than whining about the incorporation of a formal or an informal culture within the organizational lengths and breadths. The most important thing here is to understand the fact that it is significant to get things done in line with the organization’s core values, mission and vision statements rather than changing for one reason or the other and thus bringing with it a plethora of problems left, right and center. Within the organizational contexts, the firm needs to change its position with the changing times otherwise it will literally vanish away from its competitors and more so the customers, for which it actually exists. It must bring about certain efforts which are geared up to make it sound, look and eventually feel different from the rest of the lot and in the long run, have a selling proposition in it and in its products that help it in winning the customers time and time again. Similarly, it needs to make sure that its staff members and employees are amongst the best in the industry and that they can relate with the norms and routines of the top corporations working hand in hand with each other but competing on the business level. An organization which can learn can understand what are its responsibilities with regards to the society, the environment, its stakeholders and customers, its functions and different processes which have to be looked down up at with a legal and ethical perspective. This means that the organization emancipates its working methodologies in line with its already set values and moral principles. Moreover, it knows what are its obligations and compulsions towards all the above-mentioned. The organization is always willing and eager to learn from its mistakes, ready to bring in newer and fresh processes within its folds and always encouraging its stakeholders and employees to invest more money and time, respectively. Managing an organization is also an important function which comes under the learning principles. It has case studies and best case scenarios to look up to whenever there is a problem or trouble at hand and it knows who the right person is to contact whenever there is some discrepancy within the system. Add to that the organization tries to keep its contacts, no matter in which capacity they are, at a maximal point and always keeps on increasing so as to become a socially active player within the relevant industry. This knowledge base has the role of continuously improving the systems and working methodologies. It also has the best available middle management employees who know the technical basis of running the organization and whose potential can largely benefit the sound workings of the company. Thus it is very important to understand that an organization which is willing to place the knowledge base at level with the top management when it comes to calling the shots (taking the decisions), is willing to experiment in a very proactive manner; one that can reap rich dividends in the near future. Learning within an organization can also be an intrinsic entity when there are special trainings and in house courses and seminars for the employees and stakeholders. An organization which is willing to learn is such that can create value for its customers and provide more investment opportunities as far as its stakeholders are concerned. What this does is that it creates a competitive environment and spirit within the organization and each entity that functions within it, is ready and willing to give in their very best so that the eventual goals of the organization could be met in a positive and safe manner. The steps that the organization takes all this while are proactive which indeed works as a positive sign and the same should be the case at all possible times as well. A fact related with organizational structure is that the change in the organizations’ strategies as well as structures guarantees that the company is present and willing to do more than just provide products and services to the end consumers. It wants to make the people realize that the company is there and wants to do its very best by tailoring its strategies in such a manner that can only benefit them nonetheless. Also the fact that organizations need to evolve over a period of time is testimony enough for them to grow within themselves and thus adopt and hold on to a new path altogether, one that will be their torchbearer as well as reap rich dividends for them not only in the present times but also in the future. These strategies are so much in alignment with the future goals and tactical perspectives that they fulfill what is really expected of them, both in terms of short term expectations as well as the long run. Planning is thus the key word here and for any multinational to succeed in the long run, it is of paramount significance to have a safe and sound plan ready and not only that but also be proactive in its approach towards the accomplishment of the plan nonetheless. The basis of all strategies and structural changes that usually happen from time to time is on the shoulders of the top management where they have to decide whether or not the adopted strategy be the source of light in the coming quarters or years for that matter. It is only upon their insistence to have the same within their ranks that the new strategic planning is done in the first place. If the top management is not ready, it is very difficult for the knowledge organization, which really is the middle management of present times, to do even an iota of struggle. The structural changes usually happen from time to time and more so without even informing all and sundry but what is more important for the workers and employees within an organization is to know that these changes would bring in more revenue for the said multinational organization and in turn become the basis for their own respective well being and success in the industry, both financially as well as socially. Thus it is not only about just adhering to the structural changes on the part of the employees in the literal sense but also understanding that these changes would do some benefit or the other in a combined effect as well as that on a personal level. Then only is the approach developed which keeps the organization’s individual entities going and thus they remain satisfied no matter what kind of problems linger on their heads. The changing global environment demands that the multinational organizations are ready to change whenever the need so happens. They have to be on their toes all the time as well as carry out activities; both tactically as well as from the long term perspective that satisfies all the stakeholders and not just the consumers who receive their products and/or services. As we move ahead we see that the managers need to look at several different angles which are related with the business itself. This means that there is a general sense of negativity attached with the way in which managers perform their tasks. It also gives air to the notion that managers know nothing about what the requirements of the stakeholders are in the whole equation but then again this assumption might just not be correct as well. The managers might just be thinking about the long term scenarios and therefore have to sacrifice the short term interests of the stakeholders for their long term ones. However this is all pretty confusing to understanding and more so within the business circles and the related processes in which managers perform their duties and tasks. A business is seen from quite a number of different stances. First there is the business stance which suggests that it has to remain in a particular industry to thrive itself in order to earn revenues. Then there is the customer stance which suggests that the customer wants value for money and the best possible product at the cheapest price always. The third stance is that of the distribution channels and vendors who do their bit at manufacturing, wholesaling, distributing and retailing the very products. When all these viewpoints meet in harmony, then only one can witness a complete symphony between the different business processes, activities and feelings that are so very significantly attached with the business that we are talking about here. Long range planning can help a particular company gain so much in accordance with its goals and objectives that had been planned and drafted but in the current times more and more attention and emphasis is making the rounds of the discussion as to whether these plans can actually deliver what was expected of them in the first place. Now we shift to the methodology and rationale behind building competitive advantage. This is something that is build over time and requires synchronization between the tactics, activities and the overall strategy of the company which is producing the product(s). Competitive advantage is developed when there is a differential undertaking on the part of the customer. This could be in the form of lower prices than the competitors, better quality, efficient sales services and support and a number of other features. Thus customer satisfaction is something which cannot be measured by a standard set of parameters. It has to be experienced always with different set of offerings that are made available. These offerings could be in the form of better quality products, higher and more efficient services or a bundle of both high class product and state of the art service, in which case it would not be categorized under either of them rather as a mixture of both. It is pretty true that the market dynamics suggest that the competitive advantage can only be achieved when the customer is given what he or she wants but then again is there any limit to his or her wants? The answer would be no and quite rightly so. The customer expects value for money and thus the best possible product at the most effective rate, thus it would be correct to understand his point of view and then go about changing the product offerings, prices and the value thus provided. However in this whole equation, we cannot forget the stakeholders’ role since these are the people who have invested in the equities of the company and they are there for quick returns. Therefore the benefit point for the stakeholders is one that has to be understood in the proper contexts before we move any further. Organizations in the present times are doing their utmost in order to know more and more about their valued customers and stakeholders. For this, they have devised certain strategies which are in line with the values that their business has set for itself. These values are thus deeply intrinsic within the mission and vision statements of the company. In order to gain further knowledge about the customers, research is being given proper emphasis which would eventually discern the exact basis for the customers to come and make that vital purchase. It is a fact that the business world of present times can have a lot of improvement within their ranks if they adopt the policy of working towards the establishment of a performance management system. This would guarantee them a lot of success as their employees and workers would dedicate their whole hearted efforts towards the well being of the company as well as towards their own individual capacities. The usage of sound planning on the part of the managers is very imperative as it ensures that the same is not only important to the whole well being and the actual basis of the business but also the manner in which it invites the short term gains and incentives that come along all this while. Managing change within an organization is one of the most significant aspects that come under its sound functioning regime. Only the companies which are able to come to terms with the new norms and practices are the ones that succeed not only in the short term but also in the longer scheme of things. This means that the company has to devise certain ways and means through which it can manage change, measure it and effectively counter the problems that come in its way all this while. The learning process, meanwhile on the part of the organization is immense since it finds out the exact mechanisms and procedures through which change is going to affect the employees’ and stakeholders’ relationship with the company’s central essence, which is the top management, making all the decisions that would eventually benefit the company in the long run. Similarly, long term planning has to be drawn in the light of the objectives that the company has set for itself and this does not mean that the revenues and profits alone are the points that need discussion rather the emphasis is on understanding the mission and vision statements of the company and the manner in which the two align with the goals that it has to meet over a period of time and then only weigh it with the benefits that are reached courtesy the long term incentives and the short term gains. Thus it is a fact that contingency planning is the buzzword which is making the business circles’ rounds in the current times. These provide a stop gap solution to the needs which are drawn up by the companies and then the answer is found out so as to cope up with the very same. Different scenarios and short term plans thus provide for a lot of cushion as far as vital tactical planning on the part of the said company is concerned and this indeed forms up as an important ingredient of the different processes that are running within the company. It might also be possible that the different departments present within a company have their own respective agendas that they have to meet and thus the long term planning can take a back seat in this equation. The administrative, decisional, interpersonal and other skills present within the repertoire of the management of the company have to understand that the long term planning has to make way for the tactical moves that are introduced within the company every now and then and which is for the betterment of all concerned, more than anything else, for the company and its stability in the long run itself. In the end, it would be proper to state that sound organizational control and structural foundation paves the way for an organization to be run in a professional manner. Competitiveness has to remain the key for the organization and the top management at the helm of affairs cannot deny the very same fact. An organization to function in vacuum merely dependent on its revenues over a period of time is just not the order of the day anymore. Organizational structure should mingle itself with the policies that are coming in every now and then in the business world and try to play its part in accordance with the very same. The usefulness of its resources can only be harnessed when there is a decent enough endeavor to understand the dynamics of the market, the overall industry and more than anything else, the stakeholders who have invested huge sums of money within the realms of the organization and last but not the least the customers themselves for which the company strives to run a business in the first place and without whom the organization will not even be what it is in current state. With attention paid on getting things done in the textbook manner, the organizational gurus must ensure that learning is being used upon with case studies and recent examples to document their efforts. Also performance management systems as discussed earlier in the paper, are very significant to the actual basis under which an organization conducts itself. Thus the business is pretty much dependent on the way in which the organization’s different operating techniques are employed and the attempts must be in line with getting these operational tactics and strategies right every time there is a crisis or even when one is missing. Being proactive remains the key in such a changing global scenario within the organizational realms. All said and done, specific organizations must ensure that their workings are based on ethical and moral principles rather than minting money from left, right and center. It is the social responsibility aspect that makes an organization winner or otherwise at the end of the day. BIBLIOGRAPHY AXLEY, Stephen R. (1996). Communication at Work: Management and the Communication-Intensive Organization. Quorum Books BASSETT, Glenn. (1993). 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